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DECISION

On import tax rates applicable to import goods of Lao origin

THE MINISTER OF FINANCE

Pursuant to the Export Tax and Import Tax Law and the Laws Amending and Supplementing the Export Tax and Import Tax Law;

Pursuant to the Government's Decree No. 86/2002/ND-CP of November 5, 2002, defining the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies; and Decree No. 77/2003/ND-CP of July 1, 2003, defining the tasks, powers and organizational structure of the Finance Ministry;

Pursuant to the Prime Minister's directions in the Government Office's Official Letter No. 4672/VPCP-QHQT of August 19, 2005; and the written agreement between the Trade Ministry of the Socialist Republic of Vietnam and the Trade Ministry of the Lao People's Democratic Republic on commodity items eligible for preferential import tax rates provided for by Vietnam and Laos;

At the proposal of the director of the Tax Policy Department,

DECIDES:

Article 1.- To promulgate together with this Decision the following lists:

1. List I: The list of commodities eligible for 50% reduction of the particularly preferential tax rates specified in Vietnam's List of commodities and tax rates for implementation of the ASEAN's Common Effective Preferential Tariffs for the 2003-2006 period, which is promulgated together with the Government's Decree No. 78/2003/ND-CP of July 1, 2003, and amending and supplementing decrees. For commodities not on the CEPT list, the 50% reduction of the MFN preferential tax rates specified in Decision No. 110/2003/QD-BTC of July 25, 2003 promulgating the Preferential Import Tariffs as well as amending and supplementing decisions shall apply.

For commodity items on List I, if the CEPT tax rates applicable to them are higher than the MFN tax rates specified in the current Preferential Import Tariffs, the 50% reduction of the MFN tax rates shall apply.

2. List II: The list of commodities ineligible for the preferential import tax rates under the Vietnam-Lao preferential tax program.

Article 2.- Imports originating from the Lao People's Democratic Republic and not on the two lists mentioned in Article 1 of this Decision shall enjoy the import tax rate of 0% (zero percent).

Article 3.- Imports eligible for application of the import tax rates specified in Section 1, Articles 1 and 2 above must satisfy the following conditions:

- Having certificates of origin (C/O) from the Lao People's Democratic Republic (according to the Regulation promulgated together with the Trade Minister's Decision No. 0865/QD-BTM of June 29, 2004, on grant of certificates of origin of goods, and documents on additional guidance);

- Being subject to customs clearance through border-gates specified in the Agreement between the Trade Ministry of the Socialist Republic of Vietnam and the Trade Ministry of the Lao People's Democratic Republic (in Annex I enclosed herewith).

For commodity items subject to quotas (in Annex II enclosed herewith), to enjoy the import tax rates specified in this Decision they must, apart from satisfying the above-said conditions, be imported within the given quotas under the Trade Ministry's guidance. If imported in excess of the given quotas, the 50%-reduced tax rates mentioned in Article 1, for commodity items on List I, or the MFN tax rates, for commodity items subject to other quotas, shall apply.

Article 4.- This Decision takes effect 15 days after its publication in "CONG BAO" and applies to import declarations registered with the customs offices as from September 1, 2005.